IRS Tax audit of Apple K-1 form

I am dealing with a tax audit. One of the issues is the reporting of income from the Apple K-1 form that I received from iPhone app royalties. I have a tax court date of Oct 11. The case is in San Francisco. One of the issues is that of the income reported on an Apple K-1 form. The IRS wants to tax the full ***** amount even though 30% of that amount was taken for commissions and fees. The IRS seems difficult to accept my explanation.

Has anyone else had a similar issue? Can I get a reference for a CPA/lawyer to deal with the issue?

        - Ken